Decision details

It is recommended that Cabinet approves the Draft Budget 2024/25 including all appendices and it be forwarded to Full Council on 20 February 2024 for consideration and approval with the following specific recommendations:-

(1)     That it be noted that the Council Tax Base was agreed at Full Council on 12th December 2023;

(2)     That it be noted that the Council Tax Support Scheme was approved at Full Council on 12th December 2023;

(3)     That it be noted that Housing Rents and Service Charges were uplifted by Full Council on 12th December 2023;

(4)     That the report of the Section 151 Officer, included at paragraphs 2.4.1 to 2.4.20, as required under Section 25 of the Local Government Act 2003 on the robustness of the estimates made for the purposes of the budget calculations and adequacy of proposed financial reserves be noted;

(5)     That it be recommended that Council approve the Medium Term Financial Strategy at Appendix A which incorporates the following recommendations:

a.      Approve the MTFS and embedded MTFP as an estimate of the Council’s current financial position at January 2024;

b.      Approve the Guiding Principles as framework for financial planning for the period of the MTFS;

c.      Approve the Capital Planning Principles to guide the preparation of the Capital Programme in the years ahead;

d.      Note the planned development of the Transformation Programme to date and through 2024/25 and endorse the extension of the transformational approach to other services of the Council;

e.      Note the Budget Timetable set out in this report;

f.       Approve the submission to DLUHC of a proposal to employ flexible use of capital receipts in financial year 2024/25 and to delegate the amendment and final approval of this proposal to the Portfolio Holder for Finance and Interim Director of Finance together with the Assistant Chief Executive;

g.      Approve the onward submission of the Winter 2024 update of the MTFS to the next meeting of Full Council;

h.      Approve the adjustments to fees and charges as set out in Annex 12;

i.       Approve the savings proposals set out at Annex 5.

(6)     It be recommended that an increase of 2.99% in the level of general council tax for 2024/25 be approved;

(7)     It be recommended that an increase of 2.00% in the level of Adult Social Care precept for 2024/25 be approved;

(8)     That it be recommended Council approve the General Fund Budget net budget of £333.008m at Appendix B, including the proposed total increase of Council Tax for Sandwell Metropolitan Borough Council of 4.99%, in accordance with the Council Tax Referendum Principles as set by Government for 2024/25.

(9)     That the Council Tax amounts by Band at Appendix C be noted pending final notifications of precept amounts by the Office of the Policy and Crime Commissioner and the Fire Authority with formal ratification to be presented as part of the Council Tax Resolution on 20th February 2024.

(10)   That it be recommended that Council approve the report at Appendix D on the Dedicated Schools Grant and Schools funding which incorporates the following recommendations such that Council:

a.      adopt the minimum transition option for calculating schools funding in 2024/25;

b.      approve the Growth Funding at £1.60m in 2024/25;

c.      approve the introduction of a Falling Rolls Fund in 2024/25;

d.      approve the transfer of £0.512m funding from the Schools Block to the Central Schools Services Block (CSSB) to fund the attendance service;

e.      approve the CSSB, De-delegated and Education Function proposals as set out in Annex A (with the exception of Schools in Financial Difficulty);

f.       adopt the allocation by block per paragraph 5 of that Appendix; and

g.      note the details of the Schools Funding Settlement.

(11)   That it be recommended that Council approve the General Fund Capital Programme at Appendix E;

(12)   That it be recommended that Council approve the Housing Revenue Account and HRA Capital Programme at Appendix F including:

a.      Noting that Full Council on 12th December 2023 approved recommendations of the report entitled ‘The review of council tenants rents and housing related property charges’ as outlined in paragraph 8 of Appendix F and Annex 1;

b.      Approve the HRA Revenue Budget for 2024/25 as set out in Table 2;

c.      Note the HRA estimated working balances in 2024/25 as set out in paragraph 15 of Appendix F;

d.      Approve the investment principles for the HRA Capital programme as set out in paragraph 19 of Appendix F;

e.      Approve the HRA Capital Programme control totals as set out in Table 3 of Appendix F;

f.       Approve the HRA Treasury Management Strategy as set out in paragraph 4 of Appendix F;

g.      Approve the 30 year HRA Business Plan as set out in Annex 2 of Appendix F.

(13)   That it be recommended that Council approve the Capital Strategy and Capital Financing Strategy at Appendix G and H of this report.

(14)   That it be recommended that Council approve the Investment Strategy set out at Appendix I.

(15)   That it be recommended that Council approve the Treasury Management Strategy Statement at Appendix J including:

a.      The Borrowing and Investment Strategy for 2024/25;

b.      The Minimum Revenue Provision Policy Statement for 2024/25;

c.      The Treasury and Prudential Indicators for 2024/25 to 2026/27, summarised at Annex 6;

d.      Expected new net borrowing of £40.4m in 2024/25.

(16)   That Cabinet endorse the Revenues and Benefits Policy Framework at Appendix K and recommend to Council that:

a.      Approval be given for the Revenues and Benefits Policy Framework for 2024/25 comprising the policies set out at Annexes 1 to 9 of the Appendix K;

b.      Approval be granted for the Council Tax Award of Discount Policy (Annex 2), Council Tax Discretionary Reduction Policy (Annex 3), Non-Domestic Rates Discretionary Rate Policy (Annex 8), Non-Domestic Rates Discretionary Hardship Relief Policy (Annex 7) and War Pension Policy (Annex 9) as set out Appendix K; and;

c.      Authority be given to the Director of Finance – Section 151 Office in conjunction with Cabinet Member for Finance and Resources, and in consultation with the monitoring officer to make necessary changes to the policies during 2024/25 due to the Cost of Living Crisis.

(17)   Delegate to the Section 151 Officer and the Monitoring Officer any further financial adjustments, corrections or amendments to this suite of reports necessary in forming the final preparation of these papers for Full Council on 20 February.

(18)   Approve that the Section 151 Officer be given delegated authority to make transfers to or from reserves during the financial year to ensure that adequate reserves are maintained and adjusted when spend from earmarked reserves is required.

(19)   Approve that the Section 151 Officer be given delegated authority to adjust the funding sources applied to the Capital Programme during the year to maximise flexibility in use of capital resources and minimise borrowing costs where possible.